đThe crypto market will pump only when the US stock market pumps, and the stock market will pump only when interest rates are reduced.
Simple Explanation:
Interest rates will only decrease when the economy slows down. Right now, inflation is still high, and it needs to come down further. At the same time, unemployment needs to rise slightly before the government considers lowering rates. In other words, until the economy naturally slows down, there is no chance of getting cheap loans or easy money.
Another Important Signal â The Bond Market
Think of it this way: Suppose you have money to lend, and youâre deciding between lending it for 3 months or 10 years. Normally, if you lend for a longer period (like 10 years), you should get a higher return because the risk is greater.
However, when the opposite happensâmeaning a 3-month loan gives a higher return than a 10-year loanâit signals that investors believe the economy will slow down in the future. This is called an âinverted yield curveâ, and it often signals that interest rate cuts are coming.
When Will Interest Rates Decrease?
Looking at the current situation, interest rates are likely to be reduced between July and September (Q3). So, if youâre waiting for cheaper loans or better investment opportunities, youâll need to be a little patient.
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